Relating to requirements for disclosures and recordkeeping by persons making mortgage loans, the official text

WEST VIRGINIA LEGISLATURE

         2026 REGULAR SESSION

                     Enrolled
            Committee Substitute

                         for

           Senate Bill 573

                           BY SENATOR AZINGER
         [Passed March 12, 2026; in effect 90 days from

                        passage (June 10, 2026)]
    Enr CS for SB 573

1 AN ACT to amend and reenact §31-17-9 of the Code of West Virginia, 1931, as amended, relating

2   to requirements for disclosures and recordkeeping by any licensee or person making a

3   mortgage loan; reinforcing state law regarding late fees; mandating disclosure of late

4   payment penalty maximum; requiring borrower’s signature on closing statement;

5   modifying form references; and providing that a separate, state-specific closing disclosure

6   is not required if all mandated information is contained in federal closing disclosures.

    Be it enacted by the Legislature of West Virginia:

    ARTICLE 17. WEST VIRGINIA RESIDENTIAL MORTGAGE LENDER, BROKER AND

    SERVICER ACT.

    §31-17-9. Disclosure; closing statements; other records required; record-keeping

    requirements.

1   (a) Any licensee or person making on his or her own behalf, or as agent, broker, or in other

2 representative capacity on behalf of any other person, a primary or subordinate mortgage loan

3 shall at the time of the closing furnish to the borrower a complete and itemized closing statement

4 which shall show in detail:

5   (1) The amount and date of the note or primary and subordinate mortgage loan contract

6 and the date of maturity;

7   (2) The nature of the security;

8   (3) The finance charge rate per annum and the itemized amount of finance charges and

9 additional charges;

10  (4) The principal and total of payments;

11  (5) Disposition of the principal;

12  (6) A description of the payment schedule;

13  (7) The terms on which additional advances, if any, will be made;

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14  (8) The charge to be imposed for past-due installments, including the late payment penalty

15 maximum;

16  (9) A description and the cost of insurance required by the lender or purchased by the

17 borrower in connection with the primary or subordinate mortgage loan;

18  (10) The name and address of the borrower and of the lender; and

19  (11) That the borrower may prepay the primary or subordinate mortgage loan, in whole or

20 in part, on any installment date and that the borrower will receive a rebate in full for any unearned

21 finance charge.

22  Such detailed closing statement shall be signed by the broker, lender, or closing

23 representative and by all borrowers and a completed and signed copy thereof is retained by the

24 broker or lender and made available at all reasonable times to the borrower, the borrower's

25 successor in interest to the residential property, or the authorized agent of the borrower, or the

26 borrower's successor, until the time as the indebtedness is satisfied in full. Providing the closing

27 disclosure required by the Truth-In-Lending Act (TILA)-Real Estate Settlement Procedures Act

28 (RESPA) Integrated Disclosure (TRID) Rules or applicable federal closing disclosure that

29 provides the loan details required by this subsection, including the late payment penalty language

30 set forth by §46A-3-112 and §46A-3-113 of this code, is considered to meet the requirements of

31 this subsection. A separate state-specific closing disclosure is not required if the federal closing

32 disclosure contains all information required under state and federal law.

33  The commissioner may, from time to time, by rules prescribe additional information to be

34 included in a closing statement.

35  (b) Upon written request from the borrower, the holder of a primary or subordinate

36 mortgage loan instrument shall deliver to the borrower, within 10 business days from and after

37 receipt of the written request, a statement of the borrower's account as required by §46A-2-114

38 of this code.

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39  (c) Upon satisfaction of a primary or subordinate mortgage loan obligation in full, the holder

40 of the instrument evidencing or securing the obligation shall comply with the requirements of §38-

41 12-1 of this code in the prompt release of the lien which had secured the primary or subordinate

42 mortgage loan obligation.

43  (d) Upon written request or authorization from the borrower, the holder of a primary or

44 subordinate mortgage loan instrument shall send or otherwise provide to the borrower or his or

45 her designee, within three business days after receipt of the written request or authorization, a

46 payoff statement of the borrower's account. Except as provided by this subsection, no charge

47 may be made for providing the payoff statement. Charges for the actual expenses associated with

48 using a third-party courier delivery or expedited mail delivery service may be assessed when this

49 type of delivery is requested and authorized by the borrower following disclosure to the borrower

50 of its cost. The payoff information is provided by mail, telephone, courier, facsimile, or other

51 transmission as requested by the borrower or his or her designee.

52  (e) A licensee shall keep and maintain for 36 months after the date of final entry the

53 business records regarding residential mortgage loans applied for, brokered, originated, or

54 serviced in the course of its business.

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Enr CS for SB 573
              The Clerk of the Senate and the Clerk of the House of Delegates hereby

         certify that the foregoing bill is correctly enrolled.
         ...............................................................

                       Clerk of the Senate
                           ...............................................................
                               Clerk of the House of Delegates

         Originated in the Senate.
         In effect 90 days from passage.

                                       ...............................................................
                                                 President of the Senate
                                                           ...............................................................
                                                              Speaker of the House of Delegates
                                                        __________

              The within is ................................................ this the...........................................
         Day of ..........................................................................................................., 2026.

                                                                   .............................................................
                                                                                         Governor

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